Mexico trade agreement , What does it mean
The UK is vocal on trade agreements signed since “BREXIT”. The Mexico trade agreement being one of those signed around the world. American multi-nationals operate facilities across Mexico. Donald Trump worked hard to try to mothball some of these to brings jobs back to the USA. He had partial success but US Businesses still trade directly from Mexico. Mexican trade agreements are key to US businesses operating a supply chain inclusive of factories in Mexico.
Mexico has plenty of trade agreements
This is true. Mexico has 13 Free Trade Agreements (FTA’s) which cover 50 countries in total. it is also a member of the Pacific Alliance, a trade bloc formed by Mexico, Chile, Colombia and Peru. The UK has now joined this growing list of countries which freely trade with Mexico. As a member of the ( WTO ) World Trade Organisation and ( APEC ) Asia-Pacific Economic Cooperation it is a strongly developed trading nation. The UK trade agreement came into force on 01st June 2021. The Mexico trade agreement for the first few months were subjects to ( MFN ) Most Favoured Nation tariffs. Freight companies can provide assistance in reclaiming taxes.
EUR1 is still valid under the Mexico trade agreement
The UK has continued to use the EUR1 movement for shipments to Mexico. These certificates are identical to those previously in use before “BREXIT”. The only difference, The country of origin must be the “UNITED KINGDOM”. You cannot package or label goods from Europe as UK origin unless significant work or processing is complete in the UK.
What is the volume of trade from the UK to Mexico
According to the world bank Mexico is the world’s 15th Biggest economy. Since 2010 UK exports to Mexico have grown by 7% annually. This has not been one way traffic and bilateral trade has also increased. In 2020 the total trade in goods and services reached 5.1 Billion pounds. Our major trades with Mexico are :
- Automotive & advanced engineering
- Food & Drink
- Life Sciences & Healthcare
- Financial and professional services
Mexico is a country which has always been important for trade to and from the UK. XPand logistics have operational trade links across Central and South America and Mexico is a key investment area for us. With direct flights operating into Mexico from the UK we have direct access to US trading partners from their facilities in Mexico. Allowing UK suppliers to sell directly into the US supply chain at source.Mark Reid : Xpand Logistics Manchester
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